Work to transform a former university campus into a state-of-the-art Commonwealth Games Athletes Village can begin after the award of a £20 million towards the project.

It means that the Birmingham City University site at Perry Barr can be bought, demolished and cleaned up ready for construction of up to 1,226 properties - which will not only temporarily accommodate athletes during the 2022 Games but provide permanent homes for Brummies after.

Neighbouring sites, which were once part of the IMI metal works and other industrial activity could also be decontaminated ready for new building.

It means that work can get underway within weeks.

The West Midlands Combined Authority (WMCA), the group of councils and regional mayor awarded the grant, which comes from a fund set up to prepare brownfield land for new housing, to get the project under way.

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They are also eagerly awaiting news of a £143.5 million bid to the Government’s Housing Infrastructure Fund to help not only build the new homes but regenerate the wider Perry Barr area including upgrading the rail station, building a new school, creating a green 'orchard' space for residents and relocating the bus depot.

The total cost of the development is likely to be nearer £370 million - with the council set to borrow £170 million to cover the rest. It expects to cover the costs of borrowing through the future asset, rental and resale value of the new houses.

West Midlands Mayor Andy Street said: “The Commonwealth Games development is important for two reasons – not only is it a key part of the offer for the Games to take place but it will also mean regenerating Perry Barr and providing much needed housing for Birmingham.

“We hope that soon we will hear from government about the remaining funding for this ambitious scheme.”

Birmingham City University, Perry Barr campus (Image: Google Maps)

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Birmingham 2022 bid chairman and council leader Ian Ward added: “The Commonwealth Games Village will provide athletes and officials with everything they need to perform to the peak of their powers in the summer of 2022.

“This funding is a key element of the package we are putting together to deliver this project, so it is great to see the WMCA board underline their commitment to the Games and what we are doing to regenerate Perry Barr and the wider north-west area of the city.

“The Village will be the catalyst for a much wider home building plan, critical if we are to meet the housing demand in the city, as outlined in the Birmingham Development Plan – and we remain fully committed to working with existing residents to shape a scheme that is the best one possible for current and future citizens in the area.”